cd /news/artificial-intelligence/follow-the-money-especially-in-open-… · home topics artificial-intelligence article
[ARTICLE · art-64362] src=osnews.com ↗ pub= topic=artificial-intelligence verified=true sentiment=↓ negative

Follow the money, especially in open source

Linus Torvalds, creator of Linux and git, is employed by the Linux Foundation, which receives significant funding from AI-focused companies including Google, Huawei, Facebook, Microsoft, Oracle, IBM/Red Hat, and Anthropic. Many of these companies are heavily in debt due to AI spending, with Oracle's debt downgraded and IBM experiencing a historic stock crash, raising concerns about the sustainability of AI investments.

read2 min views1 publishedJul 18, 2026

Linus Torvalds, the creator of the Linux kernel and git, is employed by the Linux Foundation. This Foundation is a non-profit organisation dedicated to, as the name obviously implies, the promotion of Linux. The primary use of the funds it collects is to “help fund the infrastructure and fellows, including Linus Torvalds, who help develop the Linux kernel”. The list of megacorporations donating most of the Foundation’s funds is long. The Linux Foundation has twelve platinum members, which donate $500000 per year, followed by twelve gold members, who donate $100000 per year. Below these two primary tiers lie the silver peasants, who each donate $5000-$25000 per year, based on number of employees. Looking at the list of twelve platinum members, I noticed something interesting. Of the twelve platinum companies, six are “AI” companies or companies with massive investments in “AI”: Google, Huawei, Facebook, Microsoft, Oracle, and IBM/Red Hat. Then there’s Samsung Electronics, which is raking in stupendous amounts of money thanks to the “AI” bubble. Additionally, one of the gold members is Anthropic, another major “AI” company and makers of “Claude”, the sloppiest of slopcoding tools. Many of these companies are unimaginably deep in the red when it comes to “AI”, with very little indication they’re ever going to be able to recover any of it. The situation is particularly bad for Oracle and IBM/Red Hat. Oracle’s debt has been downgraded to one notch above junk status because of its “AI” spending, while IBM’s shares experienced the largest crash in its 115 year history only a few days ago. By the way, in the first half of 2025, “AI-related capital expenditures contributed 1.1% to GDP growth, outpacing the U.S. consumer as an engine of expansion”. Fun fact: since most of The Netherlands is effectively a swamp, most of the country’s buildings are built on massive wooden or concrete poles (piles) hammered deep into the ground until they hit something more stable than mushy clay and wet sand. Otherwise, buildings in the country would simply sink into the ground. Every Dutch person who ever lived near a construction site has heard the rhythmic kathunk, kathunk, kathunk, all day long, as the massive piledriver machines spread their gospel. I guess something reminded me of this just now. Anyway, a large chunk of the funding the Linux Foundation, Linus Torvald’s employer, receives is coming from increasingly desperate companies frantically trying to convince a populace deeply skeptical and often downright hostile towards “AI” to spend money on “AI” before the bubble bursts. For some reason, I thought this was interesting.

── more in #artificial-intelligence 4 stories · sorted by recency
── more on @linus torvalds 3 stories trending now
sponsored brought to you by zahid.host 4,200+ EU-deployed projects
reading about agents? ship yours in a single git push.

Run your AI side-project on zahid.host

EU-based hosting, git-push deploys, automatic HTTPS, no cold starts. Free tier with a custom domain — perfect for shipping the agent you just read about.

$git push zahid main
Live at https://your-agent.zahid.host
Get free account → Pricing
from €0/mo · no card required
LIVE [news/follow-the-money-esp…] indexed:0 read:2min 2026-07-18 ·